The U.S. Department of Housing and Urban Development (HUD) announced an $8,081,000 loan guarantee to the City of Mount Vernon, New York for the Mount Vernon Public Facilities Improvement Fund Project. The funds will enable the city to enhance municipal facilities by improving accessibility in line with Americans with Disabilities Act (ADA) requirements and repurposing historical landmarks as public facilities. This initiative aims to benefit residents, particularly low- and moderate-income families. Additionally, the project includes essential repairs to local fire stations and acquiring new fire protection equipment.
“In addition to housing, HUD prioritizes strong community development,” said Acting Secretary Adrianne Todman. “Communities thrive when investments focus on the needs of the people who live there and support an inclusive economy.”
“With our new Legacy Challenge, I’m delighted to share that you can now access up to five times your CDBG funds in flexible, low-cost financing,” said Principal Deputy Assistant Secretary Marion McFadden for Community Planning and Development. “I look forward to seeing how you apply this low-interest funding toward increasing your community’s affordable housing stock and ensuring everyone has access to a safe home.”
Section 108 of the Housing and Community Development Act of 1974 provides Community Development Block Grant (CDBG) funds as a source of low-cost, long-term financing for economic and community development projects benefiting primarily low- and moderate-income persons. Section 108 supports various projects such as housing, infrastructure, and other physical developments.
Earlier this month, HUD launched a Legacy Challenge offering up to $250 million in low-cost capital through the Section 108 Loan Guarantee for transformative housing-forward changes in local communities across America.
This funding can be used for:
- Adaptive reuse including commercial-to-residential conversion
- Preservation and rehabilitation of existing units
- Infrastructure support for housing production such as utility installation or upgrades
- Manufactured housing including facilities for new homes
- Eligible housing uses within mixed-use or transit-oriented development projects
- Revolving loan pools supporting local housing development
For communities expressing interest by November 1, 2024, HUD will provide additional repayment flexibilities and waivers to streamline program requirements. Interested applicants will be invited to participate in a technical assistance cohort with tools provided for application development. On August 29, 2024, HUD will host a kickoff webinar about the Legacy Challenge. More information is available on HUD’s website.
